Jade Truck Loans FAQs

There are numerous reasons how Jade achieves cheaper interest rates and cheaper loans than individual businesses can achieve when the handle their truck loan on their own. We’ll cover off on a few key points and we’re happy to elaborate further in conversation with you, We are accredited with multiple banks and lenders and have an impressive standing in the finance sector. The amount of business we write in heavy vehicle loans gives us the bargaining power to negotiate on interest rates in a way that a business approaching say a bank themselves could hardly match.We are professionals in this space and have the in depth expertise and experience to know where to go for the best offers. We are accredited with many non bank lenders that only work directly through lenders and brokers such as us industry only sources, which offer more choices in rates offered. Our consultants are skilled negotiators and have strong connections and networks in the finance sector.

Not necessarily. The interest rate across the loan products offered – Chattel Mortgage, Leasing, CHP and Rent to Own can vary. This is due to certain aspects of the loan structure and conditions of the different types of loans. Chattel Mortgage can offer the cheapest rates while Rent to Own may attract a higher rate. Any variations in interest rates should be considered against the taxation and other benefits derived from individual loan products to a business. Discussing with your accountant which loan type will deliver the best overall outcome for your business is highly recommended.

No. When the RBA cuts rates that primarily relates to home loans which are structured differently from business finance such as secured truck loans. Most heavy vehicle lending are on a fixed interest rate, your interest rate will remain at the level for the entire term of your loan. There would be no necessity to review your loan when you hear reports of interest rate changes. If a business took out a loan several years ago for instance at a much higher interest rate and they still have several years to run on their loan, they may consider reviewing their loan with a view to refinancing with a loan at the current low rate.

If you are comparing like with like, then the interest rate should be the same. That is if the same business applied for a loan to purchase a truck and applied to refinance a truck of a same age and condition with the same loan product, then the interest rate should be the same. Essentially refinancing is sourcing a loan for a second hand truck. You may have purchased it new but if you are part-way through a loan, then the truck would be used which may attract a higher interest rate because of the age of the asset is now older – depending on the bank or lender.

Most Truck Loans are secured loans established at a fixed interest rate. Chattel Mortgage, Leasing, CHP and Rent to Own are all secured. This is consistent across loans for all types of trucks and for special category loans such as No Docs and Low Docs Truck Loans.A fixed interest rate means that the interest rate on a particular loan remains at the rate offered when the loan was established through the entire loan term. The rate will not change regardless of what happens with the official cash rate or economic conditions.

From a big picture point of view interest rates are derived based on a range of factors which include the official cash rate in Australia that is set by the Reserve Bank, global economic conditions and financial markets. Focussing more on the Australian lending market and banks and other lenders set their interest rate based on their costs to acquire their funds which is partially set by the official cash and their exposure and interest in specific sectors. Some lenders may focus purely on home loans while others provide more broad-based lending. In regard to truck loans,there are many banks and non-bank lenders. Some of the non-bank lenders specialise in heavy equipment finance and they can be more flexible with interest rates on trucks as they have a deeper understanding of the market.